Levi Strauss announced financial results for the third quarter ended August 27, 2023.
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Net revenues of $1.5 billion were consistent with the prior year on a reported basis and 2% lower on a constant currency basis versus Q3 2022.
DTC (Direct to Consumer) net revenues increased 14% on a reported basis and 13% on a constant currency basis, driven by broad based growth in both company operated mainline and outlet stores and e commerce. Revenues from e commerce grew 19% on a reported basis and 18% on a constant currency basis reflecting double digit growth across all brands. As a percentage of third quarter net revenues, DTC comprised 40% of total net revenues.
Wholesale net revenues declined 8% on a reported basis and 10% on a constant currency basis as growth in Asia and Latin America was offset by declines in North America and Europe.
In the Americas, net revenues decreased 5% on a reported basis and 7% on a constant currency basis. DTC net revenues increased 12% on a reported basis and 11% on a constant currency basis driven by company operated mainline and outlet stores and e commerce.
Wholesale net revenues decreased 12% on a reported basis and 14% on a constant currency basis as softness in North America was partially offset by growth in Latin America.
In Europe, net revenues decreased 2% on a reported basis and 6% on a constant currency basis; excluding Russia, net revenues decreased 3% on a constant currency basis. DTC net revenues increased 10% on a reported basis and 6% on a constant currency basis, and 11% excluding Russia, driven by company operated mainline and outlet stores and e commerce.
Wholesale net revenues decreased 10% on a reported basis and 14% on a constant currency basis, reflecting the cautious order environment among wholesale partners.
Asia net revenues increased 12% on a reported basis and 18% on a constant currency basis, reflecting growth across almost all markets, including strong growth in China. DTC net revenues rose 15% on a reported basis and 23% on a constant currency basis, driven by strength in company operated mainline and outlet stores and e commerce. Wholesale net revenues increased 8% on a reported basis and 13% on a constant currency basis. ■